News Provided By: PR Newswire

NEW YORK, March 1, 2023 /PRNewswire/ -- Future FinTech Group Inc. (NASDAQ: FTFT) ("hereinafter referred to as "Future FinTech", "FTFT" or the "Company"), a blockchain application technology developer and a fintech service provider, announced today that on February 27, 2023, Future FinTech (Hong Kong) Limited ("FTFT HK"), a wholly owned subsidiary of the Company, signed a Share Transfer Agreement (the "Agreement") with Alpha Financial Limited ("Alpha Financial"), a firm based in Hong Kong, to acquire its wholly owned subsidiaries Alpha International Securities (Hong Kong) Ltd. ("Alpha HK"), a company incorporated in Hong Kong and Alpha Information Service Shenzhen Co., Ltd., a company incorporated in China ("Alpha SZ"). On September 8, 2022, the Company announced that FTFT HK signed a Memorandum of Understanding with Alpha Financial to acquire Alpha HK.

Alpha HK focuses on three financial services sectors: (1) online brokerage services consisting of Hong Kong equities as well as US equities where its works with its partner, a US brokerage firm, (2) underwriting and distribution of securities for Hong Kong IPOs, and (3) underwriting of US dollar-based bonds issued by Chinese municipal cities and companies in Hong Kong. Alpha HK holds Type 1 'Securities Trading', Type 2 'Futures Contract Trading' and Type 4 'Securities Consulting' financial licenses issued by the Hong Kong Securities and Futures Commission. Alpha SZ provides technical support services to Alpha HK.

Steven Xiang, General Manager of Alpha HK, stated, "The Alpha Securities management team has substantial international financial markets experience and our principal team members are from well-known financial institutions. We have over 60,000 customer accounts and since 2020, we have underwritten 29 IPOs in Hong Kong. In terms of our offshore US dollar-based Chinese bond issuance, since 2020 we have underwritten nine Chinese municipal and enterprise bonds in Hong Kong."

Mr. Xiang continued, "Alpha HK is committed to providing customers with a full range of financial services in Hong Kong including online brokerage services, IPOs, financial advisory services and US dollar-based Chinese municipal and enterprise bond issuance services among our other services."

Shanchun Huang, Chief Executive Officer of Future FinTech, commented, "We believe that the acquisition will be synergistic with Nice Talent Asset Management Limited ("NTAM"), our 90%-owned asset management subsidiary also based in Hong Kong, as well as other financial services businesses that we are developing. We believe that Alpha HK could also play an important role in our continued transformation into a diversified fintech enterprise that is international in scope. Our objective is to optimize our current opportunities and integrate financial businesses into a comprehensive and strategic financial services platform."

Pursuant to the Agreement, FTFT HK agreed to acquire all of the issued and outstanding shares of Alpha HK and Alpha SZ from Alpha Financial in cash for a price of HK$15,659,949 (approximately US$2,007,686) ("the Total Purchase Price"); 50% of the Total Purchase Price is to be paid to Alpha Financial within 5 working days after the signing of the Agreement with the remaining 50% to be paid within 5 working days after FTFT HK receives approval from the Hong Kong Securities and Futures Commission (the "HKSFC") for the transfer of Alpha HK to FTFT HK prior to December 31, 2023 (or such later date as the parties mutually agree upon). If the HKSFC fails to give such approval within 365 days of the Agreement, Alpha Financial will refund the amount paid by FTFT HK under the terms of the Agreement within 3 working days after the earlier of receiving the notice of failure or the expiration of 365 days unless FTFT HK and Alpha Financial mutually agree to extend such deadline.